Avestix’s Latest Fund Seeks Out ‘New Paths for Growth’

“Value investing” predates the 1929 stock market crash, but most financial pundits pinpoint 1949 as the year the investment strategy truly took off, thanks to Benjamin Graham's publication of The Intelligent Investor. The book has remained in print ever since and has inspired legions of investors, including perhaps its most ardent admirer, Warren Buffet, who called it “the best book on investing ever written.”

Although it’s more than 600 pages long, it is arguably most famous for making value investing accessible to the general public. Value investing encourages investors to seek out underappreciated stocks that may be trading for less than their actual value. The logic goes that once the true value of the stocks is realized, patient investors will reap rewards. Although not technically a “value fund," The Avestix Public Equities Fund, our newest investment vehicle, leverages some of the key principles of the investment strategy. 

‘Sustained Performance’

As Ruan Lindeque, Avestix’s Chief Investment Officer explains, the Fund “invests in leading public companies poised for sustained performance. We focus on companies with strong financials, experienced management, and a sustainable competitive advantage.” By targeting undervalued stocks, he says, the Fund can “help foster long-term growth while offering investors the opportunity to realize potentially reliable returns and dividends.”  

Stock picking, he explains, involves selecting marketable equities using the same scrutiny that would be applied if his team were being asked to evaluate an acquisition business. In the case of The Avestix Public Equities Fund, he says, his team looks for equities offering easily understood business models, favorable long-term prospects, experienced leadership and strong oversight, all while being attractively priced. 

“Rather than buying equities that offer an anticipated favorable price,” he says, “we look for investment opportunities that are currently available at attractive prices. And, if the price declines, Avestix may treat it as an opportunity to purchase more shares if we believe the company’s performance warrants continued support.”  

This strategy aligns with more traditional value investing but with a twist: on occasion, there may be an opportunity to purchase pro-rata portions of potentially strong businesses at discounted prices. Consequently, Lindeque says, potential bargains in business ownership, which may not be available directly through corporate acquisition, can be obtained indirectly through stock ownership. 

“When priced appropriately,” Lindeque says, “Avestix may purchase large positions in selected companies — not to gain control of an organization, but rather to take advantage of potential growth opportunities and corresponding dividends.” 

Competitive ‘Moats’

The Fund also focuses on delivering potentially high dividend yields to investors, offering a reliable source of income. Its investment strategy prioritizes investments in companies with a proven track record of distributing substantial dividends, which may deliver both potential stability and growth.

“We look for companies with exceptional management teams that demonstrate strong leadership and a history of creating value,” Lindeque says. “We believe that strong management can drive long-term success, and we seek companies led by experienced professionals committed to operational excellence and shareholder value.

This Fund also emphasizes financial stability by selecting companies with strong balance sheets. 

“Our portfolio is built around businesses that maintain more cash than debt, something that sounds simple, but many billion-dollar hedge funds don't even practice. This helps ensure they have the liquidity needed to weather economic downturns for a long time,” he says. 

“Our Fund is committed to investing in companies offering potentially sustainable and competitive advantages, or ‘moats,’” he explains. “We select companies that appear to be in a position to fend off competition while, at the same time, maintaining market leadership.” 

Next Steps

Are you seeking growth-oriented investment opportunities in recognized companies that appear to be priced below their actual market value? If so, learn more about The Avestix Public Equities Fund.